Title
Consider/Discuss/Act on a Resolution Adopting a Development Program Proposed by M2G Ventures, LLC. as Part of the Downtown Redevelopment Initiative and Directing the City Manager to Negotiate a Term Sheet and Comprehensive Development Agreement Based on the Proposed Development Program
Summary
COUNCIL GOAL: Enhance the Quality of Life in McKinney
(5B: Promote reinvestment activities and ordinance changes in Historic Downtown McKinney that balance the preservation of historic character with current market needs)
MEETING DATE: November 19, 2024
DEPARTMENT: Development Services
CONTACT: Michael Quint, Executive Director of Development Services
RECOMMENDED CITY COUNCIL ACTION:
• Approve the proposed resolution.
ITEM SUMMARY:
• Staff is proposing a resolution which, if approved, will adopt a development program proposed by M2G Ventures, LLC.’s (“M2G”) and direct the City Manager to negotiate a term sheet and development agreement based on the proposed development program.
• M2G, McKinney’s preferred development partner for the downtown redevelopment initiative, has been working to refine their proposed development program since first presenting their vision for the redevelopment of four (4) City-owned properties totaling approximately 4.75 acres in size, which are generally located between Herndon Street, Kentucky Street, Lamar Street, and Chestnut Street in the City’s historic downtown and cultural district. The changes made to the proposed program since November 28, 2023, align with the Guiding Principles for the project, which were adopted by the City Council in March 2024.
• To move forward with negotiating a term sheet and subsequent comprehensive development agreement governing the use and development of the properties, M2G first needs to receive the City Council’s adoption of their proposed development program.
• In general, the proposed development program includes a 6-story hotel with event and commercial spaces; a 3-5 story mixed-use building consisting of office, food and beverage, and commercial uses; publicly accessible, privately owned open spaces; and up to 5-story residential use buildings. As part of the proposed development program, the City will also construct a new parking garage with a minimum of 250 spaces, a reimagined public park, Central Park, which will front onto Kentucky Street, and a reimagined public open space located south of the Hall Memorial Library.
BACKGROUND INFORMATION:
• On January 24, 2023, the City Council directed staff to issue a Request for Qualifications (“RFQ”) seeking a partnership with an experienced development team to redevelop four (4) City-owned properties in the historic downtown.
• The City issued a Request for Qualifications (#23-38RFQ) seeking a development partner on June 18, 2023, and upon its submission deadline of August 17, 2023, 15 responses were received. After an objective review of the 15 responses to the RFQ, five (5) development teams were selected for a panel interview.
• The top three (3) scoring development teams from the panel interviews were asked to present a preliminary development program to the City Council at the November 28, 2023, special meeting. Ultimately, the City Council selected M2G as the preferred development partner at the January 2, 2024, City Council meeting.
• City Staff and representatives from M2G have been diligently working to refine the development program presented by M2G on November 28, 2023, while concurrently identifying development terms that should be included in a forthcoming term sheet and subsequent comprehensive development agreement.
FINANCIAL SUMMARY:
• N/A
BOARD OR COMMISSION RECOMMENDATION:
• N/A